Lbma Limited (lbmalimited.com) is a fraudulent brokerage website that was registered on May 31, 2024. The site claims to offer investment services in various markets such as forex, indices, ETFs, ETNs, options, commodities, and stock CFDs, and states it does not provide services to countries and regions where doing so might violate local laws or regulations.
Company Registration Information and Regulatory Status
According to information on lbmalimited.com, the company's entity is Lbma Limited, which holds a U.S. NFA license, license number 0563358. Additionally, the company claims to have a U.S. MSB license, number 31000269824572. However, the website does not disclose further registration information about the company entity and lacks legal documents such as terms of service, privacy policy, and risk warnings.
Upon verification, the U.S. Financial Crimes Enforcement Network (FinCEN) website indicates that the MSB number 31000269824572 belongs to SK Markets. Additionally, the U.S. National Futures Association (NFA) does not list a company with NFA ID 0563358. Therefore, lbmalimited.com is a fraudulent website with no company entity and no regulation.
Trading Instruments
lbmalimited.com claims to offer various financial derivatives for trading, including forex, indices, ETFs, ETNs, options, commodities, and stock CFDs.
- Forex: The forex market is the largest financial market globally, trading currency pairs between different countries. Investors earn profits through currency exchange rate fluctuations.
- Indices: Indices measure the performance of a specific group of stocks, such as the S&P 500, which tracks the performance of 500 large U.S. companies. Investors use indices to diversify their investments.
- ETFs: ETFs are investment funds traded on exchanges that pool various assets such as stocks, bonds, or commodities. Investors can trade ETFs like stocks.
- ETNs: ETNs are debt instruments issued by financial institutions with returns linked to a benchmark index or asset. Unlike ETFs, ETNs do not hold any assets but rely on the issuer's credit.
- Options: Options are derivatives that give holders the right, but not the obligation, to buy or sell an asset at a specific price on a future date.
- Commodities: The commodities market trades physical goods such as gold, oil, and agricultural products. Investors can trade these assets using futures, options, and other instruments.
- Stock CFDs: CFDs are derivative instruments where investors do not own the underlying asset but earn profits from the price difference through agreements with brokers.
Account Opening Procedure
The account opening steps on lbmalimited.com are as follows:
- Visit the official website and click the "Open An Account" button on the homepage to enter the account registration page.
- Fill out the email address and set a login password in the account application form, receive a verification code and enter it in the form, then submit the application form to complete the registration.
- After logging into the account, users need to complete KYC identity verification to deposit funds and start trading.
Account Types
lbmalimited.com claims to offer various trading accounts, including Multi-asset accounts, Stocks CFDs accounts, ST5 Accounts, Retail Traders accounts, and Professional Traders accounts.
Among them:
Retail Traders
- Major currency pairs: Leverage 1:30
- Minor currency pairs, indices, and gold: Leverage 1:20
- Commodities and metals other than gold: Leverage 1:10
- Stocks and ETFs: Leverage 1:5
- Cryptocurrencies: Leverage 1:2
Automatic Stop-Loss: 50% of account equity. The least profitable position will be closed until the margin level is above the minimum requirement.
Professional Traders
- Currency pairs: Leverage 1:200
- Metals except for silver: Leverage 1:100
- Commodities, indices, and silver: Leverage 1:40
- Stocks and ETFs: Leverage 1:20
- Cryptocurrencies: Leverage 1:5
Lbma Limited Account: Positions will be closed when the account balance reaches $50.
ST5 Account: Automatic stop-loss when account equity reaches 10%. The least profitable positions will be closed first.
Trading Platform
Public information on lbmalimited.com shows that it offers the ST5 trading platform, available only on web and mobile. By clicking on the mobile download link provided on the website, the trading software Blockexa appears in the App Store, while EVJORERJG appears on Google Play.
Deposits and Withdrawals
lbmalimited.com claims to support deposits and withdrawals through VISA, Mastercard, Skrill, and other methods.
Conclusion
Investorpedia reminds investors that Lbma Limited (lbmalimited.com) lacks a company entity and regulation, suspecting it of being a scam. Investors are advised to choose reputable brokers with transparent information and strict regulation to avoid unnecessary financial losses.
Currently, this brokerage is marked as "Suspected Scam" on Investorpedia.
